In addition to filing the statutory accounts and corporation tax return there are several other tax matters and filing requirements which could be relevant to a company and require attention. To avoid a deadline being missed, penalties or missing out, we have summarised these below. As always, should you require any more information or would like to chat through, please get in touch!
Research & Development Tax credits:
Companies who believe they are eligible and are looking to make an R & D claim for the first time or those who have not made a claim within the last 3 years, are now required to file a notification to HMRC of intention to make a claim within 6 months of its year end. For example, where a company has incurred qualifying R & D expenditure in its year ending 31 December 2024, if it’s the company’s first time to make a claim, it will be required to file a notification of its intention to make a claim with HMRC by 30 June 2025. If this is not done by the deadline, the company will no longer be eligible to make a claim.
Annual Tax on enveloped dwellings (ATED):
This is a tax charged on a company, a partnership with a company member, or a collective investment scheme which holds an interest in one or more UK residential dwelling(s). It applies when the single dwelling interest is worth more than £500,000. Main points to note:
- The chargeable period runs from 1 April to 31 March. Where the single-dwelling interest is held on the first day of the chargeable period, that is 1 April, the return must be filed by 30 April in the year of charge. The ATED charge is based on the valuation of 1 April 2022. ATED returns for the period 1 April 2025 to 31 March 2026 are due to HMRC by 30 April 2025.
- For newly built property, the return is due within 90 days of the earlier date of the property becoming a dwelling for council tax purposes and the date it is first occupied.
- There are a number of reliefs and exemptions which can reduce the tax to as much as nil. However, an ATED return should be submitted to HMRC annually whether tax is payable, or relief is claimed. A separate ATED return is required for each individual property which is subject to ATED tax.
Benefit in kind (BIK):
Currently, the taxable value of benefits and expenses provided to employees, in respect of the tax year ending 5 April and which have not already been voluntarily payrolled, need to be reported to HMRC via the forms P11D and P11D(b) by 6 July following the tax year. Any income tax due from employees, in relation to their benefits, is collected either through the employee’s self-assessment return or via an adjustment to their PAYE tax code. Any Class 1A NIC due from the employing company, is required to be paid by 19 July (or 22 July if paying online).
Important point to note, for the tax year commencing 6 April 2026, the above reporting system will no longer be an option. With the exception of employee related loans and accommodation, it will be mandatory to payroll benefits in kind. From 6 April 2026 the reporting process for BIK will be via the full payment submission, being the same process used to report salaries. HMRC have stated that the specifications for software developers will not be available until mid/late 2025, but HMRC will expect high levels of accuracy from day one. Therefore, it is advisable for employers to start thinking now as to what systems they will need in place to gather this information and to ensure employees are aware of the changes and the impact this could have on their payslip.
Employment Related Securities (ERS):
If during the tax year ended 5 April 2025 there have been any employment related security transactions, such as the issue of shares, gifting of shares and transfer of share, loan stock arrangements etc, the company is likely to have an ERS annual return filing requirement. This is not limited to transactions between the company and the employee, it can also include a sale by one employee/director shareholder to another.
Such transactions are deemed to be employment related if they acquired by a current, former or prospective director or employee. There are very limited exceptions, however the main one to note is if it can be demonstrated that the transfer arose to a family or domestic relationship.
The ERS return is only an information collection process and not the method for reporting any tax which may be due. This means that even those transactions where no tax arises still need to be reported. Whether a tax charge will arise is a separate matter which depends on the exact nature and circumstances of the transaction.
The ERS annual return filing deadline for the tax year ended 5 April 2025 is 6 July 2025. To enable a return to be filed for any given year, the company will first need to register for a “scheme” (HMRC ‘s terminology even for one-off transactions) via the company’s online services access to PAYE for employers. Please be aware that the whole registration process can take up to six weeks, therefore we would recommend that the scheme is registered well in advance of this. Please note that the registering of the scheme is the company’s responsibility, whilst we would be happy to assist the company in doing this, we are unable to do anything as agent until the scheme has been registered.
Penalties will arise for late filing of returns.
Pillar 2 UK Registration and filing requirements:
If you are a UK company, part of a worldwide group having annual consolidated revenues of at least €750 million, in at least two out of the prior four accounting periods, it is important to ensure that the worldwide group is aware of its UK’s registration and filing requirements, regardless of whether the group has registered and has a filing requirement within the ultimate parent company’s jurisdiction or elsewhere within the group.
Pillar 2 is a new global tax system which has been introduced, aiming to minimise incentives for base erosion and profit shifting to lower tax jurisdictions by ensuring large multinational groups pay a minimum level of tax on the profits arising in each jurisdiction in which they operate. This is applicable for the first accounting period commencing after 31 December 2023.
Groups within the scope of these rules must register with HMRC online within six months of the end of the first accounting period commencing on or after 1 January 2024. For example, the registration filing deadline for an accounting year ending on 31 December 2024 will be 30 June 2025
Groups will have 18 months from the end of the first accounting period falling within scope of Pillar 2 to file their information return/overseas notice and the MTT and or DTT return. E.g., a group will have until 30 June 2026 to file these returns with HMRC, if its accounting year commenced 1 January 2024.